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Staking your MYST tokens
Andzej Korkuz avatar
Written by Andzej Korkuz
Updated over a week ago

Stake your tokens in the BETA version of the Mysterium Delegation Pool, powered by the IQ Protocol.

Our analysis from the test phase has shown us much-needed insights to adapt the model and ensure that we increase the shared value of the wider network, with a goal to enhance rewards for our community of token holders and nodes.

We will be introducing the following changes to our proposed tokenomics model:

  • There will be no staking of MYST required for node runners

  • DAI will not be introduced as a payment currency

  • Delegation Pool rewards will be generated from Mysterium’s collected network fees (Hermes smart contract fees), and redistributed to those who stake in the Delegation Pool

With these updates, we believe we are both simplifying the model and making greater improvements that creates wider value distribution with all network stakeholders including MYST token holders. Check out the current delegation pool stats, and to see how much you can earn on your stake.

Why we’re not continuing with idea of Nodes staking for participation in the network:

  • Requirement for Nodes to stake can create unnecessary disruption of the network service. E.g. Network could lose nodes, because they do not have MYST or are not able to borrow.

  • Such Tokenomics model does not fit "sharing the value of the network" goal as the main source of rewards would be Node runners and not the network itself.

  • After initial tests we understood that rewards would be relatively low. To change that, Nodes would have to stake and borrow lots of MYST which would raise the bar for joining network too high.

  • The market demand for token could potentially decrease if MYST would not be the main Network token anymore.

  • Giving priority based on staked amount is also not a right approach because it would distort the balance of the network. The main value of Nodes is their bandwidth while with higher stake nodes with lower bandwidth/quality could be prioritized thus damaging the attractiveness of the network for clients and users.

Note that the Pool will only accept Polygon MYST deposits - if you need to switch your MYST from Ethereum or Binance Smart Chain, follow our guides.

So what’s new?

The BETA Pool is exciting for a number of reasons. The engine behind the new tokenomics model was designed by IQ Labs - the original team behind PARSIQ.

The IQ Protocol launched in BETA in June, and Mysterium will be the first external project to take advantage of its “collateral-less, risk-free asset renting and staking possibilities.”

Mysterium’s testnet version of the pool allows MYST holders to delegate (rent out) their tokens using the IQ Protocol dashboard. You’ll then earn rewards on the tokens that are rented.

‍So how to stake?

  1. Connect your wallet (Metamask or with a WalletConnect compatible wallet) using Polygon network (Metamask should be switched to Polygon in advance);

  2. Once connected, enter the amount of MYST to deposit/stake and click Approve;

  3. Confirm this transaction in your wallet; Note! You should hold a small amount of MATIC in your account to pay for transaction fees on the network;

  4. Once confirmed, the deposited amount of Polygon MYST will be displayed under "Currently Staked";

  5. Your earned rewards on the tokens that are rented will be displayed under "Accrued Interest".

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